Satiate Agri Ltd Management Discussions

Satiate Agri Limited (“the Company”) is a public listed Company incorporated in December 31, 1986. The equity shares of the Company are listed on BSE Ltd under Security Code No.: 524546 at BSE.

Global Economy

In FY 2025-26, the global economy grew by 3.4%. The global economy demonstrated steady but modest growth, supported by easing inflation, resilient labour markets, and gradual recovery in global trade. However, the pace of expansion remained uncertain amid on-going geopolitical tensions, trade policy uncertainty, and uneven regional performance.

Indian Economy

India sustained its position as one of the fastest growing major economies in FY 2025-26, demonstrating resilience amid global uncertainties. Real GDP is estimated to grow by 7.7%, up from 7.1% in FY 2024-25, supported by robust domestic demand, sustained public investment, and stable macroeconomic fundamentals. Nominal GDP grew 8.9%, while Real and Nominal GVA expanded by 7.9% and 9.1% respectively. On the expenditure side, both Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) exhibited growth above 7.5%.

A favorable monsoon boosted agricultural output and rural demand, while manufacturing and construction continued gaining traction. The Primary sector grew 3.2%, driven mainly by agriculture and fishery, while the Secondary and Tertiary sectors grew 8.8% and 9.3% respectively at constant prices. Manufacturing, trade/ hotels/transport/communication and financial/real estate/professional services sectors all achieved double digit growth at both constant and current prices.

Growth was broad-based: trade, hotels, transport, and communication led at 11%, followed by financial, real estate, and professional services at 10.4%. Manufacturing grew 10.7% and construction 7.4%, reflecting improving industrial momentum, while agriculture registered moderate growth of 3%.

The Union Budget 2026-27 is anchored around the Viksit Bharat vision, prioritizing youth empowerment, structural reforms, and fiscal discipline. Growth is further supported by improved credit flow, higher capacity utilization, a good monsoon, and reforms such as GST 2.0. The budgets investment strategy targets strategic sectors - semiconductors, electronics, bio-pharma, and rare earths - to reduce import dependence and strengthen domestic capability. Infrastructure remains a central theme, with high capital expenditure directed towards freight corridors, waterways, and high-speed rail. MSMEs and the services sector receive focused support through funding access, IT reforms, skill development, and initiatives including medical tourism. Agriculture and energy security are addressed through productivity improvements, AI integration, and clean energy investments, all within a framework of fiscal prudence.

The RBI has held the repo rate steady at 5.25%, reflecting a balanced stance that supports economic momentum without compromising financial stability. This signals resilient domestic demand, supportive financial conditions, and a stable external sector - pointing to a cautiously optimistic outlook for the Indian economy in the year ahead.

Source: https://www.pib.gov. in/PressReleasePage. aspx?PRID=2269286?=48&lang=2 https://www.pib.gov.in/PressReleasePage. aspx?PRID=2233518?=3&lang=2

Outlook

The geopolitical landscape continues to cast a long shadow over global stability. Rising tensions in West Asia pose mounting risks to international trade, energy supply chains, and the broader flow of goods across borders. Concerns over potential disruptions to the Strait of Hormuz - a vital chokepoint for global energy transit - pushed crude oil prices higher, tightened liquefied natural gas supplies, and fuelled volatility across financial markets. Adding to this pressure, the ongoing war between Russia and Ukraine are keeping energy markets on edge, driving up commodity prices and straining logistics networks. The combined effect is creating a persistent upward pressure on business costs and a deepening sense of uncertainty around the reliable sourcing of critical materials and services.

Looking ahead to 2026-2027, Indias economic activity and GDP growth are expected to remain resilient despite ongoing geopolitical uncertainties. As a result, India is poised to become one of the major economies in the world with a promising growth outlook. The Management is hopeful that in future, the Company will grow its manufacturing and trading activities and will get good orders for the manufacturing of cylinders as well as repairing of old cylinders.

Your Company anticipates sustained demand growth. The outlook for 2026-2027 has been examined closely by your Company through the broad dimensions of demand drivers.

Overview of Indian Agriculture

Agriculture and allied sectors continue to play a vital role in Indias economy, contributing about 18% to Gross Value Added (GVA) and 16-17% to the countrys GDP, while employing nearly 46% of the workforce. The sectors resilience is supported by improved productivity, policy interventions and technology adoption. As per the Second Advance Estimates for 2024-25, India recorded foodgrain production of 3,577 lakh metric tons, reflecting continued strength in agricultural output. The Government of India continues to support the sector through flagship initiatives such as PM-KISAN, Pradhan Mantri Fasal Bima Yojana, PM-Krishi Sinchayee Yojana, National Food Security Mission, National Mission on Edible Oils and the Digital Agriculture Mission. The Union Budget 2026-27 increased allocation for agriculture and allied sectors to 1.63 lakh crore, with focus on productivity enhancement, climate resilience, irrigation, digital agriculture and farmer welfare.

The Government is also strengthening farmer collectivization and market linkages through the formation and promotion of 10,000 Farmer Producer Organizations (FPOs), aimed at improving farmers access to technology, quality inputs, advisory services, credit and markets.

The Government is also promoting sustainable and climate-resilient agricultural practices, including water-efficient cultivation methods such as Direct Seeded Rice (DSR), particularly in water-stressed regions. Such practices are aimed at improving resource-use efficiency, reducing labor and water dependency, and supporting long-term agricultural sustainability.

Continued emphasis on high-value agriculture, digital technologies, climate-resilient farming and rural infrastructure is expected to support long-term growth, sustainability and enhanced farmer incomes.

Source: Economic Survey 2025-26; Union Budget 2026-27; Ministry of Statistics & Programme Implementation (MoSPI); Ministry of Agriculture & Farmers Welfare (Government of India).

Industry Overview

The Government of India continues to focus on improving agricultural productivity, sustainability and resilience through initiatives promoting climate-resilient crop varieties, natural farming, improved irrigation, digital agriculture and self-sufficiency in pulses and oilseeds. Policy support is also directed towards strengthening agricultural infrastructure, promoting farmer collectivization through FPOs, expanding Digital Public Infrastructure (DPI) and enabling technology-led farming practices to improve farmer incomes and resource efficiency.

Source: Union Budget 2026-27; Ministry of Agriculture & Farmers Welfare.

Policy and Trade Tailwinds Strengthening Indias Position

A combination of policy developments and evolving trade dynamics during FY 2025-26 reinforced Indias structural advantages within the global agrochemical supply chain. Chinas announced withdrawal of VAT rebates on certain pesticide technical/intermediates from April 2026 is expected to temper aggressive export pricing in selected product lines, although the precise impact will vary by molecule and customer contract.

Progress on the India-EU Free Trade Agreement, including phased tariff elimination and the prospect of zero duty on approximately 97.5% of Indias export basket, is expected to enhance Indias competitiveness in specialty chemicals and agrochemical inputs in European markets. This momentum may also catalyse higher European foreign direct investment into India through joint-venture and greenfield manufacturing,

Global Agrochemicals: Structural Shifts Shaping the Future

The global agrochemicals market was estimated at approximately USD 299.7 billion in 2025. Growth is expected to be driven by population pressures, shrinking arable land, climate variability, the structural shift toward biologicals and precision agriculture and continuing demand for differentiated crop-protection solutions. Asia-Pacific remains the dominant region, accounting for 52.7% of global agrochemicals value in 2025. India remains at the centre of the global supply chain.

Global demand for food, feed, fuel and fibre continues to rise, with estimates suggesting that food production must increase by nearly 50% by 2050 to meet the needs of a growing population. This challenge is compounded by constraints such as limited natural resources, environmental degradation, pollution and the impacts of climate change.

Addressing it will require a multifaceted approach focused on enhancing agricultural productivity, promoting sustainable and healthy consumption patterns, reducing post-harvest losses, conserving resources, minimising reliance on chemical inputs and adopting climate-resilient practices. Plant pests and diseases also remain a critical concern, posing risks to food security, trade and farmer livelihoods, with annual crop losses estimated at up to 40% globally.

The global agrochemical (AgChem) industry, demand remained subdued through much of FY 2025-26 due to prolonged inventory destocking across the global crop-protection value chain, including innovator, distributor, retailer and grower-level inventories. This has been further accentuated with deferrals in customer delivery schedules and reduced procurement intensity by global innovators. Input cost volatility, particularly in energy, intermediates and logistics, continued to affect industry margins, even as inflationary pressures softened in select markets. Geopolitical events during the quarter ending March 2026, including heightened Middle East tensions, added a further layer of disruption and supported a shift toward more cautious, just-intime purchasing by global customers. For companies with geographic diversification, established customer relationships and differentiated molecule portfolios, these pressures increased the relative importance of strategic breadth.

Agrochemical Industry

India ranks as the fourth-largest producer of agrochemicals globally and the third-largest exporter. The domestic market is expected to be supported by rising crop intensity, labour-scarcity-led herbicide adoption and increasing penetration of differentiated branded and biological products. Beyond these headline drivers, the Indian agri-input market is shifting from a price-led, volume-driven commodity market toward a quality-led, innovation-oriented market, where differentiated branded products, precision agronomy and biological solutions are gaining traction supporting a more favourable long-term market infrastructure for Indian manufacturers. The Union Budget FY 2026- 27 reinforced this direction with an allocation of ? 6 billion toward three cluster based, plug-and-play Chemical Parks with shared infrastructure and standard environmental compliance facilities. This public investment in industrial-grade chemical infrastructure is expected to reduce the cost and complexity of capacity expansion for domestic players, improving the economics of further investment in Indias agrochemical and specialty chemicals ecosystem.

Source: PIB, Union Budget FY 2026-27 Chemical Parks release, https://www.pib.gov.in/PressReleasePage. aspx?PRID=2222931?=48&lang=2

Opportunities and Outlook

• Emerging Markets: Expansion into rapidly growing markets with increasing demand for agricultural products.

• Sustainability and Organic Products: Rising consumer demand for sustainably sourced and organic products presents new market opportunities.

• Technological Advancements: Adoption of precision agriculture, blockchain, and other technologies to enhance supply chain transparency and efficiency.

• Strategic Partnerships: Forming alliances with tech companies, logistics providers, or other stakeholders to enhance capabilities and market reach.

• Product Diversification: Expanding into new product categories, such as value-added or processed goods, to capture higher margins.

• Government Support and Subsidies: Accessing government grants, subsidies, or favorable trade agreements that support agricultural exports.

Indias agriculture sector continues to emerge as one of the worlds largest and fastest -growing agricultural economies. The sector is being supported by structural reforms, government investments, increasing formalization, and rapid digital and technological advancement. As agricultural supply chains become increasingly interconnected, Indias scale as both a producer and consumer positions the sector as a critical contributor to global food, nutritional, and energy security. The sector is increasingly shifting from volume-led growth toward a more integrated model focused on productivity, resilience, sustainability, and value creation. Rising domestic demand, export opportunities, food processing, and bio-based value chains are expected to create new growth avenues across agriculture. Going forward, the opportunities in Indian agriculture are expected to be driven by three key pillars - Scaling Up Reliable Access, Digital Intelligence, and Sustainability.

Threats

Global geopolitical tensions, such as the Russia-Ukraine conflict, pose risks to international trade stability. Resulting sanctions, tariffs, and supply chain disruptions can lead to price volatility and reduced availability of key raw materials and finished goods, potentially impacting margins and operational efficiency.

Segment wise or product wise performance

The Company has identified its activities as single segment.

Risks and concerns

The company has laid down a well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process. A detailed exercise is being carried out to identify, evaluate, manage and monitor and non-business risks. The Audit Committee and the Board periodically review the risks and suggest steps to be taken to manage/ mitigate the same through a properly defined framework. During the year, a risk analysis and assessment was conducted and no major risks were noticed, which may threaten the existence of the company.

Internal control systems and their adequacy

To ensure this, the company has installed a system of internal control, which is reviewed, evaluated and updated on an ongoing basis. Our auditor has conducted periodic audits to provide reasonable assurance that the companys established policies and procedure have been followed. However, there is inherent limitation that should be recognized in weighing that assurance provided by any system of internal control.

Discussion on financial performance with respect to operational performance

During the year under review, Revenue from operations and Other Income of the Company stood at Rs. 1161.88 Lacs showing increasing trend over the previous year Revenue from operations and Other Income Rs. 10.00 Lacs. Profit/(Loss) before tax has increased and stood at Rs. (274.28) Lacs as compared to previous year Profit/(Loss) before tax of Rs. (104.17) Lacs and Net Profit/(Loss) also increased and stood at Rs. (274.28) Lacs as compared to previous year Net Profit//(Loss) of Rs. (104.17) Lacs.

On a consolidated basis, the total revenue stood at Rs. 1161.88 Lacs as compared to previous year figures of Rs. 10.00 Lacs and Net Profit/ (Loss) for the year stood at Rs. (327.51) Lacs as compared to previous year Net Profit/ (Loss) Rs. (104.17) Lacs. Our Company is under the good management guidance and control that help continued in achieving the targets of cutting down in the cost of operations and getting efficiency in this area by using better alternated resources/means.

The Promoters, Board of Directors and entire management team are putting their stern effort to come out from the adverse financial circumstances and to achieve targeted turnover in the segment of agriculture projects.

Material developments in Human Resources / Industrial Relations front, including number of people employed.

During the year the Company had cordial relations with staff and officers. The Company believes in empowering its employees through greater knowledge, team spirit and developing greater sense of responsibility. There is One employee as at March 31, 2026.

The Company maintained healthy, cordial and harmonious industrial relations at all levels. Despite severe competition, the enthusiasm and unstinting efforts of the employees have enabled the Company to remain at the forefront of the industry. It has taken various steps to improve productivity across organization.

KEY FINANCIAL RATIOS ANALYSIS

Details of key financial ratios are as follows:

S. NO.	PARTICULARS	FY 2026	FY 2025	REMARKS
1.	DEBTORS TURNOVER RATIO	-	-	-
2.	INVENTORY TURNOVER RATIO	3.91	39.19	Decrease due increase in turnover.
3.	CURRENT RATIO	0.22	0.89	Decrease due increase in current liabilities.
4.	TRADE PAYABLES TURNOVER RATIO	13.05	109.05	Decrease due to increase in turnover.
5.	DEBT EQUITY RATIO	-29.93	-8.54	Decrease due to increase in Outstanding Loan.
6.	NET PROFIT RATIO (%)	-23.61%	-1041.70%	Improved due to increase in turnover
7.	RETURN ON CAPITAL EMPLOYED (%)	-19.16%	-214.08%	Improved due to increase in total assets.

Cautionary Statement

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may constitute “forward looking statements” within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.